Retail sales returned to growth, driven by an increase in food purchases, however sales of indoor goods, such as furniture, were “squeezed out”.
According to the latest BRC-KPMG Retail Sales Monitor, UK total retail sales increased by 0.5% year on year in July, against a growth of 1.5% in July 2023. This was above the 3-month average growth of 0.3% and below the 12-month average growth of 1.4%.
Food sales increased 2.6% year on year over the three months to July, against a growth of 8.4% in July 2023. This is below the 12-month average growth of 5.3%. For the month of July, Food was in growth year-on-year.
Non-Food sales decreased 1.7% year on year over the three-months to July, against a decline of 0.5% in July 2023. This is above the 12-month average decline of 1.8%. For the month of July, Non-Food was in decline year-on-year.
In-store Non-Food sales over the three months to July decreased 2.7% year on year, against a growth of 1.2% in July 2023. This is below the 12-month average decline of 1.7%.
Online Non-Food sales increased by 0.3% year on year in July, against an average decline of 6.9% in July 2023. This was the same as the 3-month average increase of 0.3% and above the 12-month average decline of 2.0%.
The online penetration rate (the proportion of Non-Food items bought online) increased to 35.5% in July from 34.9% in July 2023. This was below the 12-month average of 36.3%.
Helen Dickinson OBE, Chief Executive of the British Retail Consortium, said: “The late arrival of British sunshine led to a better month for summer clothing and health & beauty products as shoppers prepared for days out with friends and holidays away. However, as consumers spent on holidays and entertainment, sales of indoor goods, such as furniture and household appliances, were squeezed out. This left non-food once again in negative growth, particularly for in-store sales.
“Now that election uncertainty is over and Government is rolling out plans to kickstart economic growth, retailers are planning their own investment strategies. Many will be looking to the Autumn Budget, keen to see an end to business rates rises under the new Labour government. They will also be looking for any details of the reform of the whole business rates system, promised in Labour’s manifesto.”
